RLJ - Earnings call transcript Q3 2024

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Operator

Welcome to the RLJ Lodging Trust Third Quarter 2024 Earnings Call. [Operator Instructions] I would now like to turn the call over to Nikhil Bhalla, RLJ's Senior Vice President, Finance and Treasurer. Please go ahead.

Nikhil Bhalla

Thank you, operator. Good afternoon and welcome to RLJ Lodging Trust 2024 third quarter earnings call. Financial Hale, highlights and Mahoney, Bardenett, for Vice and Leslie will Executive our our call, the President key discuss will discuss the Chief for Chief today's Operating our results; be Chief President Officer, Executive company's Officer, On financial will available Tom Q&A. Officer, quarter; Sean

review what Factors statements on with this results risks other may may reconciliations that in uncertainties company's located press results we filed made to company call certain to update release. I actual numerous company of statements. our turn the communicated. will XX-Q Forward-looking can the in lead Leslie. reports differ to undertakes to to had impact the from be discuss materially and that no may obligation call the the are SEC. The subject been it over non-GAAP GAAP and the as the to company's Also, measures, now forward-looking helpful be found

Leslie D. Hale

afternoon, ahead were in pleased late quarter. Thanks, Nikhil. third the We us despite impact came our which of everyone, joining for Good the the results, storms quarter our with today. expectations, of in you thank and

the again allowing RevPAR resiliency quarter industry, which Our third of portfolio, exceeded us the urban-centric growth once our outperform. demonstrating is to

value expense completing accretively going continues proceeds of XXXX, Achievement near-term executing repurchases, total our attractive quarterly our quarter, to and the operating rate we quarter during returns. With on made occupancy. in results, was effective and which executing ] drive enhance us RevPAR shareholder on rate RevPAR both commitment solid industry, be X achieving sales recycling of key portfolio unlocking rate growth growth increasing to us initiatives and successfully our third including debt asset XX%. our management Additionally, non-core recycling objectives to to year-over-year meaningful [ enabled several objectives, conversions, while our balanced with all demonstrate X% refinancing operating these that position hedges, the our and exceeded to times two growth. Along our capital our by our including our between progress into into from will maturities respect performance, RevPAR dividend growth share well interest

our basis share, quarter sixth strong of points Additionally, XXX gained represents portfolio. positioning hotels the market underscoring our which of outperformance, urban-centric consecutive of the

continue quarter, to and drive outperformance X.X% our achieve hotels urban RevPAR our This growth.

with California Our and are to segments, from markets positive growth. Chicago, all RevPAR markets urban as achieving trends Southern benefiting Boston, in demand mid such high-single-digit

urban to footprint hotels reposition to our efforts RevPAR during growth achieve urban our lifestyle allowed X.X% deliberate quarter. Our the

lifestyle hotels urban represent well-positioned portfolio Our demand. our of day-a-week to are approximately capture X and XX%

over which seeing growth is nearly portfolio points to quarter, segment X% ongoing XXX quarter. from from of once growth, revenue second gains. year, see both acceleration again business driven best-performing transient was prior especially and the encouraged ADR pricing Our the improvement drove ADR occupancy basis achieving X.X% an by power, were which in the lift this demand, our the continuing We

momentum from will positive that confidence dominant with corporations, recent returning growth the The seeing us large to SMEs business steady mandates continuation company office. transient in the corporate demand, the and driver the are we While who remain of of revenues provides are increasingly trends continue.

and volume strong a Our in X.X% X.X% San X.X% achieving strong in the Group segment a revenues meetings corporate growth, Chicago, as from our key both of increase in third see many New revenue Boston, group well citywide continued quarter, and markets, also increase the as during ADR. demand Orleans. performance such in Diego, to benefited increase by as led

leisure, election. and increase weekday in encouraged in In respect holiday the strength revenues of aggregate, third impact of demand our our calendar fourth inclusive a group the to trends. our pace see drove the group XXXX were shift, healthy quarter XXXX the pace revenues. With by demand, despite X.X% group storms, for of digits, business transient remains sign mid-single quarter, and the we ahead both production to a from recent continued stable As

by during Our was X% X% leisure demand, the a revenues third decline ADR, by quarter, grew increase primarily X% a pricing consumer continued in highlighting driven by offset in which sensitivity.

focused combined growth to a the as to achieving led of F&B and our flat by which our This non-room the in revenue and total with revenue us growth, of year-over-year grow in In growth, moderation to spin allowed addition growth operating margins EBITDA managing increase quarter. rooms has top-line approach which us drove our parking achieve to X.X% solid has out-of-room costs, allowed of areas to expense revenue X.X%, X%. third such

loan, Now We third management turning $XX.X balance incremental a a XXXX third the at capital growth sold new sheet opportunistically we new disciplined the the to ramping Denver demonstrate maturities. of entered the physical and are the in in We allowing which added non-core lowest hotels the Hotel the New the million. addressed to of In by in into And Wyndham achieved a Hotel. capital and debts strengthened maintain our hotel balance several XX% average and towards fronts. hedges, to quarter. of further Tonnelle, well X.X%. We dispositions allocation. and approach Houston us repurchase of and million These Tribute term year-over-year quarter, in recent continued weighted strong to to X.X and Marriott assertively from shares Indigo a conversion flexibility Orleans Doubletree we of our recycled to to cost proceeds across ability XXXX $XXX our million sheet allocate into one entering the for completed RevPAR

Pittsburgh to than on of Hilton's Alley complete conversion the we Additionally, to in Tapestry a the the Wyndham conversion to Bankers Courtyard remained Nashville to in track and earlier Collection expected. pacing are of complete the

Collection to in with Autograph are Marriott's XXXX. X completing the of Looking transition a Pittsburgh cadence maintain ahead, Renaissance the we our to conversions of continuing year

expect which XXXX. in to towards for new We also a brand made progress Wyndham convert selecting the Boston, we

but multiple balance return on drove which execute our validates profile, strong in us to to the quarter, this growth also only allowed dividends ability and simultaneously share fronts capital of and repurchases. cash sheet initiatives free flow form Our shareholders our significant not

Looking are there slowdown fourth disruption results, including that RevPAR Hurricane by in points. the quarter, elections impact industry some November, around degree XXX in we final the fourth factors October unique of the approximately the our Milton basis will the which constrain ahead, the of quarter in estimate will and

our strong performance these our despite our the headwinds, resiliency demonstrating in portfolio However, is third and urban-centric confidence unique gives outlook. us that quarter

portfolio and we towards return portfolio's urban X markets and new while These well-positioned such improvement in should increasing together the the comparable we trends look several supply Super with to well expected the a as to be by which be we should XXXX, a believe allow of demand, of by years, which as years a projected X/X social of consumers route which the from Bowl, our historically low urban ramp D.C., positive host these healthy provide travel, industry, years our strong by costs. is which our in continued hotels, believe turn over for that Longer-term, industry our recovery pace, from demand-driven be represent in beneficial Sean? of secular and our New multiple conversions, continue Improving continue the attributes and especially trends. Group demand Washington, RevPAR, benefit as groups. attendance, continuation business demand, recovery expect will inauguration, remains positioned in and of XXXX, San given the of strong citywide tailwinds, currently benefit the growth, over we corporate the As industry of the the the is which the citywide, our and and moderating favorable growth from which meaningful concentration should will with multiple And and top the from portfolio. I ongoing now outperform prioritizing Francisco, Sean. opportunity. continued of presidential performer. to that lower digits. We to transient mid-single should Orleans, are ahead background enhanced citywide 'XX call us markets, XXXX factors, footprint all over international to next is business supported combination to and travel which the inflation remaining demand Denver borrowing of should favorable the of events due office to for

Sean Mahoney

Thanks, start, quarter owned third numbers XX To hotels and exclude our Denver, which Leslie. comparable Inn of our end during include quarter. at the the Fairfield was sold the the

all and EBITDA RLJ's include adjusted hotels from period. ownership reported FFO Our sold and during results operating acquired corporate

are third report As to demonstrated of Leslie our which pleased strength resiliency said, the results, operating quarter we high-quality portfolio. urban-centric and solid

ADR. a by occupancy growth increase X% in RevPAR in X.X% of driven quarter and third Our X.X% a increase was

daily average XX.X%, was was $XXX.XX, RevPAR occupancy was quarter and Third rate $XXX.XX.

our As and midweek transient outperformed. business was noted,

above remained the healthy the New XX%. Monthly at revenue X.X% in and growth was activity. Monthly occupancy XXXX, at X% Diego as transient Miami growth at including X.X% at growth in urban XX%, CBD markets, Chicago growth business XX%, quarter XX%, such at Third XX%, Angeles our XX%, Los of ADR RevPAR San Orleans RevPAR at of Louisville July, August, and X.X% was quarter Labor of constrained grew Portland X%. timing was September, impact at September. Day and in in X.X% X.X% and during contracted of RevPAR third August, in July, and by in growth total X.X% in which down X.X% hurricane XX%,

most the month ahead, rose the growth significant quarter. October, is of which Looking RevPAR our during

Given predominantly October weather-related above increase headwinds, ADR the year, and RevPAR is approximately to driven only X.X% by prior holiday the forecasted growth.

a benefits our expense basis, of the manage cost basis as property reversed hotel costs portfolio total meaningfully growth only by growth. Drilling third X.X% current expected, the X.X%, operating property the success as down quarter, Turning operating and expected, was On during quarter, to growth second cost growth of operating further the as operating costs, and from hotel the third quarter. moderated such of from underscoring moderation rates recent XXX room we decreasing insurance over moderating cost environment, during our per-occupied into in operating expenses, and tax cost initiatives which the benefited construct fixed and fixed our the quarter with fixed expected points outsized during third our growth the appeals. taxes to

property We difficult first of half and the fixed expect the our program growth comps renewal this of of to lapping from year during successful the quarter month. the fourth cost insurance benefit

X.X% operating portfolio EBITDA our essentially EBITDA achieved was XXXX. million, points XXXX, margin We quarter, the were third hotel of XXXX at quarter pleased third with the performance, margins basis of representing of above XX.X%. hotel flat $XXX.X XX to growth During which only and behind our

bottom-line, and adjusted adjusted quarter EBITDA FFO the $X.XX. third diluted for our to $XX.X share Turning was was million

to additional capital. our of our create managing actively continue flexibility balance cost We sheet lower further and

have we all XXXX, of XXXX maturities. our during debt far XXXX So addressed and

of loan. and term million repay corporate $XXX revolver, announced, a the XXXX of years unencumbered fixed to line during $XXX pre-COVID either term well-positioned balance of loan we credit. The approximately entered previously X.X XX has financing testament new into weighted term $XXX X.XX%, credit also our new The X X-year maturity lender a our XXXX. rate debt $XXX favorable term the is to of retained under by third loan weighted average initial As our our quarter, profiles. We $XXX hedged. options loan attractive interest million of debt, and a an million of on balance and $XXX refinance this extension X, XX third includes ended sheet current million and a a with to maturing The or available execution an the new hotels term average with XX% the years, million relationships term million the of strong loan quarter from pricing outstanding of

also quarter what liquidity of to past, with As approximately liquidity, our respect to of $XXX billion capital we in both it to embedded the projects intend have capital debt. With returning and million and relates dividends. the in share within while to remaining consistent committed value with the to repurchases unlock demonstrated third we our allocation, shareholders to through we $X.X ended invest portfolio

X.X the at average towards our $XXX of million $X.XX price million repurchase an we have of per XXX% under successfully shares approximately Year-to-date, XXXX, recycled $XX.X for million non-core active disposition During of program. share. repurchase we proceeds share been

of During repurchased we $X.XX price average the approximately $XX.X for third million per X.X shares million share. quarter, at an

our covered Board to per our cash quarterly well recently increased free supported share, is our Additionally, flow. by dividend which and $X.XX

markets to our We results making cycle monitoring the our and opportunities position during of to entire our decisions portfolio to capital debt, allocation while increase maturities, weighted to financing additional will reduce average the laddering sheet continue lodging cost drive balance the of flexibility. prudent identify improve

current the our reaffirming prior outlook, continuation and operating the are anticipates Turning guidance, we to which macroeconomic our of environment.

and $XXX.X be For which million, XXXX, between purchase $XXX.X range date and expect EBITDA per shares to $XXX.X no million and million, hotel RevPAR comparable and EBITDA and growth to $X.XX between additional corporate FFO between million adjusted comparable X% we diluted to to continue or between repurchases. adjusted X.X%, share incorporates but $X.XX, $XXX.X

We concludes Our million decrease be range will in interest outlook or dispositions, reflects million million, in assumes quarter. Thank variable million to compared still of the will $XXX expect of our in slight remarks. prepared no estimate to the be $XX on rate our range you, $XX net XXXX base refinancings. which rates assumptions debt a capital additional expenditures acquisitions, now and this our RLJ and $XXX to last expense

Operator? We will the line Q&A. now open for

Operator

from first Instructions] comes question Austin Capital Our the with Wurschmidt of Markets. line [Operator KeyBanc

Austin Wurschmidt

that was additional maybe hoping any improvement. the industries specific improving. on demand account comment really corporate around could you where detail seeing large and you're most about spoke you or some expand I provide Leslie, just regions

Leslie D. Hale

obviously, Wednesday continues Monday, of mentioned GDS to been on improve, Austin, opportunity because of frequency has traveling, terms how clearly seeing I give you call, improve, indicating then accounts by at Tuesday, along that day growth, as Yes. of is national color seeing. stay, kind and very most increased to that's we and revenue some to the the we're the at the industries and midweek that of of our strength we're week going what X.X%. Tom's on looking got pleased in for who's we're and when travel, our look continue BT length we've

Thomas Bardenett

the -- the that Austin, industries at the and start travel coming we're accountants. side seeing you more international look to to more from we're technology, think and are on see national travel Silicon corporate you India consultants, Yes. When Sure. when Valley. China about starting

about in seeing corporate mentioned, average tank Wednesday, are the corporate thing need seeing rate demand. think example, Monday, demand, in not that positive is, benefiting we're an good the that you national that accounts growth, steps Leslie areas and but on we're when from And that's we As the those what's growth. Tuesday, really only that we're left really where midweek national as

Leslie D. Hale

back, sensitive Tom's is that's coming Yes. attractive side. your the national the to you accounts side, which on have price rate rate that customer, your most helping and What rate from Austin, and perspective on is referring a least us

the for up better quarter. were was in -- second third X% in than third in increase was up quarter, rate So the expected We rate quarter us. X% in

Austin Wurschmidt

for quarter? do Yes. the believe, growth That's my the additional much follow-up. I you achieved improve actually to occupancy that this sustain mean, see guess, need mentioned Tuesday, movement mid-single Monday, I Wednesday, even I to is most of or occupancy. you upside how rate you opportunity kind

Leslie D. Hale

of I levels. today, a past sort Yes, nights don't about room this room it nights I I say, XXXX seeing XX% we're corporate quantify mean, at quarter because at of as that -- can know So right? special were looking to if proxy,

up XX% they this quarter, Our last revenues were quarter. up X% were

the So we're seeing it XX%. now, Austin at

the it not we're it we're to -- just happen that about, so There's that grind with we're pleased continuous that we're grind change. again, that it's step and improve sustain. talked nothing And that's seeing. to We carry into going all forward, Tom And won't very forward, It's XXXX. and seeing believe there. that for seeing that suggests points what grind a continues as a

Operator

Bellisario Michael with of line the from comes question next Our Baird.

Michael Bellisario

Just from me. a first question

growth would is labor to and for terms at Tom, Just hiring just more. the year-over-year guys but growth updates side, into want in the experienced how all rate that on And labor of just the half XQ of Maybe in any expense did how the also year? the dig then you growth is be on versus rate expenses rate? helpful. this that, that retention first higher impact where of And then the

Leslie D. Hale

let this sort of frame just Mike, me in general.

all today, we to when labor operating We that, look to better are think are and easier -- of turnovers that all improving starting hire normalizing. normalize. metrics, it's down, our things benefiting I see and across those it's of things

Sean So Tom hops want with I stats. -- that frame before I hops to some just in mean,

Sean Mahoney

Yes. Michael. Great question,

is what benefits. few pretty better each and of little get over seeing that benefits, for that a quarters increase wages of sort successively seen to sort X% X% stable think be we're last year-over-year and quarter. I We've wages in So and the

expect fourth into We that the continue quarter. to

that's at significantly. prepared costs, fixed and remarks, think -- headwind I been year, of the as a the when benefits what so moderated you my you wages first have look the which half a vacuum. in other When I in operating at mentioned seen, across in the expenses, really the look we've

year quarter to that fourth expect and the an well. level inflationary next into continue in as We at

we've And sort in of in so we've moderated the year, as first and headwinds inflationary seen to to would think, and continue normal we I expect moderate have levels seen -- be the the of expected, that them really, half we XXXX.

Thomas Bardenett

to question a thing workforce. last add, The you asked Mike, I about think the

momentum regards the tools of those the is We are and employees see continuing that increases, reduction and positive each a of around to to wage quarter contract to that step resources, topic. labor think retention we see and there's the continue a management company the reduction in

Michael Bellisario

Helpful. me second from conversions. question on then And a

that year-over-year that's what's lifts ramping you You When from some obviously the you does some how year? to all to you're the was provided? year this year. and And guys earlier that that previously compare going you you've then that think got this now me. from and that expect roll a more bridge year. that start then have next projects, And I next disruption think I ongoing few all up, up,

Sean Mahoney

XX% include sort that you the conversions, of continue we've growth Yes, around under of et all and conversions for ahead top-line inclusive knife, Mike, year, in year-over-year bottom-line to seen expected XX%. When of cetera, even of conversions. XX% this the where to underwriting and we be growth we are the

So seeing big that with lift actually hotels the were obviously under some in knife. we're even headwinds the

lift validates us really the value these that been we through it's so And conversions. net-net, and a for great create

Operator

question comes from line next of Oppenheimer Jenkins Our Company. with the & Jonathan

Jonathan Jenkins

quarter. on Congrats the

a kind you is the of the more continuation urban I'm a from saw steady or the earlier if seen higher that corporate strength. of you year? shift highlighted it in you've just improvement First Day, post-Labor in me, inflection curious demand in

Leslie D. Hale

it characterize would step improvement, I not a change. a as steady

all benefiting segments. thesis the urban the think continues industry. I intact, Urban outperform right? to from is It's

by I that This quarter, driven steady those all was and say all in BT stable. segments. would group. of general, benefiting BT -- a leisure was improvement But really remained third quarter, And demand and of urban's the from

Jonathan Jenkins

Very full helpful. or expectations gears quarter relative help how prior Okay. then the to baked switching And the exceeding softer year that your changed? guidance, maybe about and the third Can you guidance unchanged, with there to us think in what's a quarter implies expectations. fourth that's fourth quarter and

Leslie D. Hale

at look I general, mean, I look half. When second to you've Yes. generally intact. it's half, think second you our in at got our

You are right.

think fourth maintaining that. storms, of is that like you third driven anything was think quarter it's as sort with slightly I it softer. we're the is slightly mentioned, our about than it the or But would I way quarter and guidance. And stronger even markets more segmentation

the we rate from was As the were with there's we we as a think that as well third positive around on mentioned by And overall And our stronger mentioned was obviously in the BT softness rate election in the prepared stronger side. quarter impacted remarks, more November. third third Leisure -- was perspective. in October report fourth in storms. we demand a third pleased quarter, quarter. From quarter in perspective, positive in quarter the

mentioned in that the incremental think of saw I cadence. to big so October is significant going the coming to about we of the December think of in sort those the quarter. November about That's going at be drivers in is the And are November. with month be I Sean the contributing October. weakest. line softness be currently expect And X.X%. most to we

we being markets the to of midpoint maintains that the is the most BT the our the of Urban around think trends today. where Leisure what's guidance, mentioned weakest which group the As That's pace we it as guidance. our continue midpoint built that likely remains sort stable. of I outperform, month. demand outcome, current at actualizes about before, it's think kind of November up assumes

Jonathan Jenkins

interest could one and terms really recent pipeline, there And a spread bid-ask and it great and that's could, there rates? volume sellers, given Okay, of transaction what about color the the if me, there. buyers the between the out you in from pricing any last in looked talk compression I like move

Leslie D. Hale

acknowledging they Yes. remains whether They're get all environment rates, Well, open up, overall but up choppy. about much this, improved, still not muted see the point are transaction for expensive, of has are able The better or longer constrained. Even set to still how interest with debt although volume down. the lower more come we'll or transactions this done. a and set your taking so slightly transactions despite of are to markets

And is market it. way the of the describe not now sort transaction would is so I fully functional right

-- improve to muted that fundamentals that While we're in remains rates us, the elections improve, but the right and we constrained XXXX, the stable, environment, choppy. should hopefully remain that it behind and supply expect remains improve now to rather, given fact behind continue

Operator

question Fargo. comes next of Wells with Kesten line Dori from Our the

Dori Kesten

would 'XX to expect last you expect as 'XX? prospects in of right external would So just question, to the now, tying you pretty growth comparable -- into look

Leslie D. Hale

that, BT Yes. sit markets like it's continuing outperform, say I Orlando, urban Tampa, to really pace what our continuing today, us group actualizing. where is blocks citywide. but We've Francisco, budget building Dori, are strong San would the got in process, we that mean, to strong improve, early I have Denver, for

supply, Pittsburgh in events leisure That's in remain and and right cut the of We to talked our to stable. each then to environment number And expenses to expect direction. we consumers you and favorable D.C., still moving still continue footprint in that special of in favoring the have backdrop the inauguration in before, assets we U.S. have those markets. before, travel, low Super a and ramp. like being a as Bowl have was about We where then, I a demand NOLA Open post-rate mentioned expect conversions against where

building are would I early those in budget mean, general blocks our it's process. I that really So the say, but

Sean Mahoney

And year. in on really the do our next But Leslie stock the specifically capital have organic where we the Yes. mentioned then, any Dori, opportunities portfolio. growth sheet right, we balance opportunities could allocation year, for growth next to from remain and as -- attractively well. got that repurchase. external value have flexibility growth that, balance do we share the the balance a continue We've sheet capacity sheet the markets the to through improve, if if the

And so I be predicated capital think the well the how play this to setup is on as markets going out. as setup really fundamental

Operator

question comes Our line the Chris with Woronka next of from Deutsche Bank.

Chris Woronka

in on renovations, to you, the it's X start the whether last to going X, there understanding a about to a I you're that So X started you're year, the way is 'XX X lift guess, think I guess, more, next year about to more you've year think that the do off? Because is, And year. there question X? you levels get, is beyond talked of a conversions I where pacing have X about the to I that per guess a about follow-up

beyond that And are years that does so 'XX? out more there identified in be to imply

Leslie D. Hale

about have Boston the a that expect we year, cadence deliver that or which that to the the we somewhere talked We've Wyndham, XXXX. our Not year, year. for we autograph X between, which those going join per But renaissance have is of the we fact in next XX assets. we're on The collection. remaining all still plus fact mentioned to following have will minus We've call are get done. the conversions with it, Yes. of number

so goes for the several years our relates as And that to out cadence conversions. it

Sean Mahoney

the mean, a the to underwrite X-year respect with to we Chris, sort of on about speaking ramp, post-completion. of think then, sort we And X generally how from conversions, ramp I the conversion

we've already because the is to found reason rate able and of ahead what our the these that lot range we've that a capturing relative end think ramp expectations. the is market, that been in on tracking far shorter initial of so to thesis that's I around we're our conversions

range X conversions of underwrite. been is it's of but sort date. we've -- to shorter on to net-net, what the ramp a the generally that X-year we so And delivering end And on

Chris Woronka

talked, cuts through this from Appreciate those I would cost they And were guess, Okay. then and a follow-up, to brand that. targeting you are I flow couple of guess of would you are things I -- a about companies lot perspective, years know like earlier to as tough your expense a would that with some or flow those Marriott doing? some creep. week of -- see It's your franchisees. there that operators been

So are year after? going think fruition you high-level are come doesn't you all help the there year that a kind thing of to just through the to to to realistically Or that's really franchisees? the things that do or -- next can that flow maybe

Leslie D. Hale

it's But color any Marriott's or Yes. that. Chris, would for framing I on we they a behind plus. don't have any franchisees, thinking what always what say, time that can costs lower

the benefits welcome forward of we their so to actions. and And look

to that continue the this moment. to they're looking forward going we're brands. in to trying be collaborate And we're it. receiving think thoughtful to with I And

Operator

line [Operator from of Miller comes Securities. Instructions] Gregory question the next Our with Truist

Gregory Miller

Knickerbocker bookings years. prior either about questions leisure overall habits leisure-related And New The do to or how of expectations curious into for asking in discretionary I'm part on to York, for F&B. couple demand if and spend changing compare a and rooms in packaging read-through or have Year's New you. current there's I your I'm spend any Starting

Leslie D. Hale

to New would say, is to we're the before, what I sit I here leisure that Yes. side Year's, today pacing that And on relative trends consumer They're The it. wants encouraged overall And it travel. just fine. is, psychology we're demand the traveling reality being by remains. seeing. very of we're The that is price-sensitive about remains Knick we when I -- as stable. around the Greg, that mentioned mean, the demand

what are And they're overall, out very booking very our looking there because a would rate they're channels, trends. urban good leisure And is that discount to about little demand we shopping. bit remains I so further is, feel levels. leisure more say -- But peak at close our

haven't so both that in the a obviously would Knick demand which and from drop-off meaningful rate we And from a perspective. discussion, from that, seen benefit a

pacing. it's how about good feel we So

Gregory Miller

down And demand and draw year. And is of be XQ any if my shifting have even leisure we am then from next the demand that to you impact hurricanes months holidays Okay. markets there ad about thinking in Florida some post-hurricane. travel -- start to campaigns concerns understanding may any the curious Florida, to I as after about the I'm

Thomas Bardenett

a know, side right, And really footprint down have about are of various diversity unfortunately, houses And in leisure. after remnants everything. West. southwest the as have as well locations. When the the we there is you you think of get As variety ads Coast, in we benefit, is our think on side about you're trying and Florida Tampa thing regards back I some their hurricane Key continuation the both into south West great that down footprint to attract to getting towards folks think regards a the the in going there I to

have We season a to Estero. right down prior now renovation in underway

we importantly very the when about little coast struggles most in for other So typically one South good benefits. bit, feel then year next a in XXXX. And setup Florida, coast

because shifts approach beaches chase is find, people because that's we a to and still sun the want and common Greg, get to the leisure what a bit little South so the demand of And in want hotels to well benefit getting to shape. what's is great so of those in the finished renovations, their regards And product as we're happening. down that Florida many have the in

Operator

Dijkum of our Floris gentlemen, Point. comes with Van question and from the Ladies Compass final line

Floris Gerbrand van Dijkum

of lot you balance the have capital a cash on on front, the sheet. More still allocation

XX ] that loosens over potential assets, do you out also, sold in how kind what [ renovations. really maybe to spread couple you about assets sell have are a And financing do interesting the XX that -- assets how much market today -- some on you of to relative more you next more months of could And many see opportunities there? do the there acquire portfolio months? to is is your And dependent think if you You up? bid-ask -- But X ago? where

Leslie D. Hale

question. in so vet that Floris, lot [ a ]

be I at to Let we me the managers. I if see the Look, it. can -- day are of have hit back-to-portfolio think, end

We have XX assets.

assets face that sell wide performing, be makes bid-ask remains how transaction view that markets as so et on the rates it on will down. they're we generally opportunistic when of based our I And to where the front. the would in cetera, and headed today interest of improves, say to are coming market sense continue spread

down when to come to your expect value come down. view you there's of As rates no a seller, interest need on

portfolio so all sort in election, remains the to We general. But TBD you transaction opportunistic as continue that wide. And be we back the half near-term. probably the based to constrained past to and who continuing XXXX improve interest in to back to we in that the us XXXX. markets. out. about of we the that's expect markets It's how managers see assess But where transaction as goes get monitor should do settle be And active rates my on expect over point market being are

Operator

Ladies and gentlemen, for floor that session. the concludes our final I'll question-and-answer any turn to Hale back comments. Ms.

Leslie D. Hale

for NAREIT. joining thank you And today. all you forward you all We again many in for joining us. us Thank look of seeing to

Operator

Thank call. you. concludes This today's conference

your for at disconnect lines may Thank this time. participation. your you You

RLJ Lodging Trust (RLJ) 7 Nov 242024 Q3 Earnings call transcript